Financial planning achievement involves three important lifecycle chart you should meet before your retirement.
Below are the stages of successful financial planning before retirement;
The first stage is called the Accumulation stage. This is where you use your time well and earn money. It is critical to utilize this time in the best way to make money. The goal here is to generate cash flow either from a job, side hustles, working longer hours, cutting unnecessary expenses, saving and more.
This is the stage to move from saving to Investment. At this stage, the income earned and credit scores must have improved.
This is when you start thinking and talking of buying a home or starting a businesses. The key measure in the consolidation stage is the Rate of Return which is essentially how much has been generated from the investments you’ve made.
The spending at this stage usually includes buying annuities or perhaps relocating to another city, etc. At this stage, typically you begin to use your assets to generate cash flow and time. You’re spending from the return of prior investments.
Accomplish wealth satisfaction by achieving the points mentioned above.